Up to 10,000 new homes for private rent will be underway by 2015, Housing Minister Mark Prisk has announced.

The minister announced the first 45 projects to be taken forward using the £1 billion Build to Rent Fund.

Mr Prisk said that the innovative new projects, a quarter of which are for London, would be the first step toward creating a more balanced rental market, driven by quality instead of demand.

The Build to Rent Fund is designed to help developers invest in homes built specifically for private rent by reducing the up-front risk in a relatively untested market.

Mr Prisk said that demand for the fund, which was initially set at £200 million, was so overwhelming that the Chancellor increased the cash on offer to £1 billion in the Budget last month.

A first round of 45 projects will now proceed to a competitive clarification and due diligence process, to receive a share of £700 million, with a second round of bids for the remaining fund expected to open later this year.

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Projects going forward in this round have the potential, subject to due diligence, to deliver between 8,000 and 10,000 homes, and include:

• Genesis Housing Association, with plans for new rental homes around London

• Place First, along with Together Housing Group, who will be building across Northern England

• Crest Nicholson, who intend to bring a significant number of homes to market over many sites across the country

Mr Prisk said that the varied mix of developers, from brand new organisations and small housing providers to long-established developers, will bring new blood into a market currently dominated by small-scale buy-to-let landlords, and will help to give tenants more choice when choosing a home in the future.

Mr Prisk said: "This government is determined to get Britain building, and the Build to Rent Fund is set to help us deliver, with up to 10,000 new homes to be built from these projects.

"We've seen overwhelming demand for the fund, and it’s become clear that there’s a real appetite for rental investment. We want to support that, which is why we've made a £1 billion Budget boost to the fund.

"Now, these new projects will help us map this almost uncharted market, bringing in new blood to improve rental quality and choice, and building the new homes that this country wants and needs."

(CD/H)